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1. IT Services and Telecom Solutions
“EVERYTHING THAT CAN BE CONNECTED, WILL BE CONNECTED”
19TH APRIL 2016
ASHUTOSH PANDEY

2. Executive Summary
Air transport is a exponentially growing trade. IoT can play a major part in the improvement of manufacturing
services & for travellers convenience. The scenario was selected to illustrate the convergence of these IoT
technologies and the issues that arise as a result of this convergence and interoperability. Adoption of of smart
technologies and related applications in air travel, such as RFID-enabled passports, electronic boarding passes sent
using SMS and displays or check in through flashing of cell phones, etc.
The near-term growth outlook for the aerospace industry is very positive; leading aero manufacturers have billions of
dollars’ worth of orders placed by airlines from growth markets as well as those looking at replacing aging fleets.
Aero manufacturers are in a dilemma whether to increase their manufacturing footprint, or to focus on operations
excellence by extracting more from existing resources. The key to success in this environment is on-time
delivery, supported by reliability in operations. To achieve these goals, manufacturers need a high level of
collaboration with stakeholders across the integrated value chain extending from suppliers to customers.
This report as a preamble is based on the facts that…….
1. Are Aero Manufacturing Companies ready to go Digital
2. How Globalization of aircraft manufacturing helping new players to expand new geographies
3. How Airbus ,Boeing & other players are competing to each other
4. Will The Internet Of Things Revolutionize The Aircraft Industry
This paper also discusses how the aerospace industry can profitably leverage the convergence of the
digital forces of mobility, Big Data and analytics, cloud computing, and social media

3. Need for Digitization
Source: Oxford Economics (2011): “The New Digital Economy
Aerospace companies typically demonstrate core strengths
in innovation, productivity and disciplined execution made
possible by intensive quality rigor. Technology also plays a
key role in making these reliable and robust systems deliver
plane after plane successfully.
Manufacturers need to ensure supplier capacity build
up, regulatory certifications, synchronization of supply
lines, and readiness of production systems for higher levels
of utilization
Aerospace manufacturers can borrow best practices and
strategies of other discrete manufacturing industries to
visualize the challenges, opportunities and solutions that
work well in their context. These includes:
1. Improving productivity in operations by applying lean
techniques
2. Implementing supply chain management programs
focusing on global sourcing, risk
management, procurement transformation, and
supplier and partner management programs
3. monitoring of after-sales customer satisfaction factors
4. Ensuring business process integration through technical
and functional upgrades

4. Digital Revolution
The future of aircraft manufacturing is something
which has been widely debated in recent years.
Using today’s technology to plan the next
generation of aircraft is no easy task. The smart
airports market is estimated to be at $9,718.07
million in 2014, and is projected to register a CAGR
of 5.61% to reach $13,481.17 million by 2020. The
Asia-Pacific and the Middle Eastern countries are
emerging regions for the smart airports market.
For the airline sector, digitisation offers multiple
opportunities to improve operational efficiency and
offer increased personalisation to passengers.
Digital capabilities help manufacturing companies
to exchange large amounts of data rapidly, store
local data centrally without limitations, enrich
processes with digital expert knowledge, generate
valuable insights from this “big data” and facilitate
communication and collaboration through digital
channels within their value chain.
“SITA report indicates that only 10% of airline Smartphone apps currently offer location-based services, but expects
that figure to grow to 65 % by 2018”
Traditional Manufacturing Value Chain
Digitize Manufacturing Value Chain

5. Digitization in the Aerospace Manufacturing Industry
"Digital transformation involves the penetration of all aspects of the product value-creation process with new capabilities that go beyond the
state of the art, and the result of which can potentially help us redefine our value proposition," Carlo Nizam AIRBUS (DIGITAL LEAD)
Airplane manufacturers are looking forward to continued
growth. the industry faces multi-level challenges while
seeking to adhere to delivery timelines and budget
constraints while meeting the new demand. These include:
1. the complexity of the aircraft business, from time taken
to set up plants to establishing supply chain
networks, compounded by high capital intensity
2. need for extensive coordination and integration with
various stakeholders across the value chain
3. pressure from customer, on time delivery and
compliance to terms of contract
4. During the early stages of industry growth, mass
manufacturing deployed by large scale assembly plants
brought in economies of scale.
5. Lean manufacturing emerged during the middle stage
of maturity, and was deployed to great effect by
Japanese manufacturers.
6. The globalization of networks and the maturity of
tiered supply chains led to shifts in the sources of
supply and demand
7. An increasing number of mergers and acquisitions
among both manufacturers and suppliers led to the
emergence of global multi-brand groups
Source: SITA, The Five Disruptive Waves of the Manufacturing Industry

6. Market Analysis
Globalization of aircraft manufacturing: New markets, New Players
Technology-rich sector has been so dominated by Europe
and the United States as aerospace. Only in recent years
has this dominance been eroded – with Canada and Brazil
carving out important positions in the regional jet market.
The Euro-American dominance of the sector does seem to
be slipping.
Asia emerges as the new, dominant region in the global
economy it seems likely that production will follow
customers.
The main driver of this growth is the economic advance of
emerging markets, which has driven an increase in air
travel.
‘ All major aircraft manufacturers agree that the fastest-growing regional market is Asia ’
-1,000
4,000
9,000
14,000
19,000
24,000
AP Europe North
America
Middle
East
Latin
America
CIS Africa
Total
Planes
Total
Value
Source: IATA, AIA

7. Market Analysis Cont’d
There was another player in this market segment, McDonnell Douglas, which back in 2007 merged
with Boeing, contributing to a higher market power of this company.
Aircraft manufacturing is a $300 billion industry that employs nearly a million people globally. The
industry is arguably experiencing a “Second Golden Age” as backorders for Boeing and Airbus are at
an unprecedented 9000 aircraft
10061
6397
2334
1809
778
596
589
424
369
348 1673
39.64%
25.21%
9.20%
7.13%
3.07%
2.35%
2.32%
1.67%
1.45%
1.37%
6.59%
Boieng
Airbus
Bombardier
Embraer
ATR
Antonov
Hawker beechcraft
BAE Systems
Fokker
Fairchild
Other
Break-up By Manufacturers
Source: IATA,

8. Competitor Intelligence & Early Adopters
The aerospace industry is a multi-billion
dollar industry and basically it has got two big
players (Airbus & Boeing) in the industry that
has been competing against each other for
such a long time
Airbus is offering its superjumbo A380 in the
expectation that airline passenger growth
would be concentrated in major global
hubs, whereas Boeing forecast a world of
smaller aircraft operating on direct routes
between a much greater variety of cities
Major manufacturers forecast that over two-
thirds of new aircraft deliveries in the next
decade will be of small and medium-sized jets
and expectation of the dominance of smaller
aircraft is evidently shared by emerging
market players in Russia, Japan and China, all
of which are developing products in the 100–
130-seat category.
Large Twin-aisle Single-aisle RegionalJets
2009 755.6 3589.1 11522.9 3022.4
2019 816.9 5446 18244.1 2723
2029 1089.9 8355.9 24704.4 2179.8
755.6
3589.1
11522.9
3022.4
816.9
5446
18244.1
27231089.9
8355.9
24704.4
2179.8
0
700
1400
2100
2800
3500
4200
4900
5600
6300
7000
7700
8400
9100
9800
10500
11200
11900
12600
13300
14000
14700
15400
16100
16800
17500
18200
18900
19600
20300
21000
21700
22400
23100
23800
24500
AxisTitle
Airplane Production Projection by Type
Source: IATA,

9. Competitor Intelligence & Early Adopters Cont’d
The airline industry is highly competitive and capital-
intensive. Because of its capital-intensive nature, fixed
costs and barriers to exit are high.
According he Aerospace Industries Association
(AIA), the nature of competition in the airline
manufacturing industry:
1. The role of technological innovation
a) Innovative Materials
b) Nanotechnology
c) Engine Manufacturing
2. Faa's aircraft certification process
3. Export credit fairness
4. The role of neaten and domestic airspace
Revenue of the worldwide leading aircraft manufacturers and suppliers in 2014
Source: Statista

10. IoT Technologies
IoT has evolved to the creation of new value propositions
and potential revenue streams from new business models:
1. OEMs have started focusing on gearing up their Service
programs aimed at helping airlines find efficiencies in
reducing fuel costs using real time data analysis
2. New aircraft models like Dreamliners for instance come
pre-designed with IP enabled avionics systems that
permit real time data to be transmitted to the cockpit
and to operations centers on the ground on flying
conditions and discrepancies observed during the flight
3. Data generated from OEMs are also being used to do a
proactive assessment of aircraft & component
operations to generate tailored maintenance
programs, thus generating value for customers
4. IoT is being used to analyze passenger traffic patterns
at airports to estimate downtimes before aircraft
departures
5. Real time location data of aircraft that impact a host of
actions ranging from Advertising bill boards to flight
information dashboards to deciding on optimized
routes
Source: SITA IT Trends Report

11. IoT Technologies Cont’d
Although data analytics brought a lot of value for the
aviation industry, it allowed aircraft manufacturers to
capture bulk of it.
For Manufacturers, IoT Means the ‘Internet of Tools’
I believe that the IoT will have two main areas of impact on
the current manufacturing landscape.
1. The first concerns the organizational structure that is
required to produce truly integrated IoT solutions. i.e.
Machine camp + Internet camp will be required to work
together
2. The second area where the IoT will have a significant
impact on manufacturers is in the area of
manufacturing technologies, i.e. connected
manufacturing equipment, connected logistic
chains, cyber-physical systems, and big-data-based
analytics of production processes will help improve the
way the physical parts of a connected IoT solution are
produced.
3. 3D models: Airbus uses 3D data to emit laser
projections over aircraft bodies in order to guide
assembly line workers
Source: SITA IIT Trend Report

12. IoT Application & Good Practices
Future of IoT in airports: A smart airport is one which
leverages the convergence of three trends:
1. passenger self-service,
2. mobility , and
3. collaborative decision-making to create a smart
ambience.
Beacons for baggage: Beacons at airports provide the
traveller with indoor way finding, and proximity based
promotional offers
You’ll always know where your stuff is : IoT can lessen
the burden of this weighty subject. Bottom line: You’ll be in
control of your luggage, regardless of its size
Boeing's 3D Projects Invigorate IT, manufacturing:
According to Colbert ( CIO ) of Boeing
interview, Boeing sees the future of augmented reality
on the assembly line
Smart Skin: This is a covering applied to the outside
of an aircraft that enables planes to sense their
environment via the use of thousands of tiny
sensors, embedded into plane’s skin
Source: SITA IIT Trend Report

13. IoT Application & Good Practices Cont’d
Location, location, location: In next three years will be to use location-based information, in many cases from
beacons, to solve baggage-related issues and help passengers board on time with notifications based on their
location, even before they reach the airport
World’s First IoT airports: London City Airport is the first airport in the world to test how the Internet of Things – a
network of machines communicating with each other online can transform operations
Robot car valet: Germany’s Düsseldorf airport introduced robot valets in July 2015. The valet service is booked
through their online airport parking portal and passenger’s will include their departure and arrival dates and times
Improved in-flight entertainment: Services on-board flights are also set to improve by 2018 with 66 % airlines
offering wireless internet and multi-media services on passenger devices.
United Airlines and GE Make Room for Mobility: Its mobile strategy over the past five years demonstrated how
tablets not only help keep pilots connected while on the move, but also can reduce costs and improve services

14. Business Benefits
There are various benefits, the Internet of Things will make Flying Less of a Hassle:
1. Improved flight operations: Its eestimated cost savings (cumulative) in airline industries over 15 years, propelled
by a 1% reduction in fuel, capital expenditures and inefficiencies
2. Airlines Look to IoT to Improve Service, Operations: By 2018, 16 percent of the 200 major airlines surveyed, plan
major IoT programs, and a further 41 percent plan to invest in research and development. The Internet of things
(IoT) will deliver clear benefits in the next three years, and more than one third (37 %) already have allocated
budget for it.
3. The aerospace manufacturing CIO has long been associated with managing new technology
implementation, strategic IT planning and keeping tabs on the latest solutions that could boost productivity.
4. Dubai aviation district looks to attract aircraft manufacturers: According to “Tahnoon Saif, the vice
president of aviation at Dubai ”by “2020 to 2025 this is when our original equipment manufacturer [OEM]
initiative is going to start.”

15. Key outcome
1. The civil aerospace sector’s profit pool expanded from $31.9
billion in 2013 to $38.4 billion in 2014—a 20% jump driven by
higher deliveries by aircraft OEMs
2. Boeing, projects a boost for its B737 MAX production rate to 52
per month by 2017, and Airbus wants to step up A320neo
production to a minimum of 50 and perhaps as much as 60 per
month in 2017
3. It's a new passenger out there; airlines will need to build
'social' pace to create brand equity
4. Airlines are buying more aircraft to meet demand: To meet the
rising number of passengers, and to replace old units, airlines
have been purchasing dozens of new aircraft
5. Big Data and Analytics Offer New Opportunities for Airport
Optimization
6. The aviation industry is growing at a very rapid pace. According
to renowned aircraft manufacturer Boeing, the aviation
industry requires 500,000 new pilots in the next 15 years

16. Research Methodology
1. The International Air Transport Association (IATA)
2. SITA or Société Internationale de Télécommunications
Aéronautiques
3. Aerospace Industries Association (AIA) Reports
4. TOP Airlines Manufacturer Annula reports
5. World Aviation Regulating Authorities
6. Airline Social Media Outlook
7. Blogs & Third party consulting paper related to
Aerospace Industry
8. Airlines Manufacturers CIO Interviews
9. The Boeing Company, “787 Dreamliner, Program Fact
Sheet,” 2015
10. Airbus Group, Global Market Forecast (2014-
2033), September 2014